About Thailand

Living There

A land of unsurpassed natural beauty, Thailand’s endless white sandy beaches and magnificent ancient temples have always attracted those seeking paradise. The property market in Thailand is currently booming as a result of the rapid economic growth the country is experiencing and the expected increase in tourism that Thailand will undergo as a direct result of further property development. 

Economy 

Although agriculture is the primary means of employment in Thailand, industry, commerce, and services account for the 80% of the gross domestic product. After recovering from the ‘Asian Crisis’ of 1997, the Thai economy recovered well and Thailand’s growth has since averaged 5.6 percent. The GDP growth in 2006 and 2007 was driven mostly by relatively strong exports, which were maintained despite continuing appreciation of the baht against the dollar. This suggests that the fundamentals of the Thai productive economy remain strong. 

Politics 

Thailand is a constitutional monarchy whereby the hereditary monarch is head of state and the prime minister is head of the government.  Following a coup in 2006 whereby a military junta seized control of the country (eventually appointing their own prime minister) Thailand returned to a democratically elected government in late 2007 after a democratic general election took place in December.

Buying Guide and Process 

There are a number of routes open to foreign investors wishing to acquire property in Thailand. Land can be leased for 30 year periods  (with the option to extend this for another 30 years indefinitely) and condominiums can be purchased outright providing there is not already a foreign ownership of over 49%. The simplest route to purchasing freehold property is to do so through the establishment of a limited company which is an extremely straightforward process in Thailand and allows investors to purchase property without restriction.

Investment Guide and Facts 

For potential property investors, Thailand currently offers a good medium to long-term opportunity to invest in an emerging property market. Early investment is the key to achieving the highest returns as property prices are currently at an all-time low. Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region. 

Price Per Square Foot

In Hua Hin, mountain-side villas are cheapest with prices only reaching up to around €137 (GBP 97) per sq. ft. while top luxurious properties can cost almost twice as much. A 492 sq. ft beachfront villa will be the most expensive at €911 (GBP 647) per sq. ft. 

Rental Yields 

Rental yields for luxurious condominiums in Bangkok range from 7.2% to 8.9%. The exception is 984 sq. ft. (300-square metre) units yielding only around 6.84%. 

Mortgages 

Until recently, mortgages have been unavailable to foreigners for property purchase in Thailand. However, in line with the government’s drive to increase foreign ownership in Thailand, certain banks, such as Bangkok Bank, are now offering limited mortgage services and other loans to foreigners. This is seen as a major breakthrough by property developers and agents, and will inevitably increase demand for Thai property. Currently you should generally expect to obtain no more than 50% finance, with the exception of some well-known developments where finance of nearer 70% is available.

Capital Gains Tax 

There is no Capital Gains Tax in Thailand. 

Income Tax 

In Thailand, Income Tax is charged at between 1% and 3%.